The long-standing issue of Libya's debt to Tunisia has re-emerged, with the two countries' foreign ministers meeting on the sidelines of the United Nations General Assembly in New York. The Libyan and Tunisian ministers agreed to elevate coordination efforts to address several pending issues, primarily focusing on Tunisia's outstanding financial claims. Libya's debt, estimated at $250 million, encompasses dues to Tunisian healthcare facilities and services provided to Libyan patients.
The debt's roots date back to 2011 when Tunisia became a primary destination for treatment of Libyan patients due to the deteriorating security and health situation in Libya. Tunisian healthcare facilities treated Libyan cases through medical committees affiliated with successive Libyan governments, in addition to direct dealings, before the bills accumulated and turned into financial obligations for the Libyan state.
In December 2022, Libya's then-Prime Minister, Abdul Hamid Dbeiba, pledged to settle the total financial obligations to Tunisia by the end of that month. However, despite this commitment, the issue remains unresolved, with parts of the debt still under review and audit. The process has been complicated by multiple governments, committees, and entities involved, hindering a comprehensive and final settlement.
The Libyan authorities justify the delay in settling some of the dues by the need to review and audit the invoices to ensure the validity of the claims and prevent overbilling for medical services or accommodation costs. The repeated formation of joint committees since 2018 to review claims and conduct audits, alongside a series of official meetings and communications, has yet to yield a final resolution.
The impact of delayed payments extends beyond Libya, affecting several Tunisian healthcare institutions that have borne financial burdens due to unpaid dues. Although there have been threats to suspend treatment for new Libyan patients, Tunisian institutions have denied imposing an official ban on treating Libyan patients.
The issue is not limited to cash payments, as Tunisia has previously suggested converting part of the debt into investments, allowing for the settlement of dues within joint economic arrangements rather than direct payment. This brings the matter into the context of broader economic relations between the two countries, encompassing trade, energy, transportation, and border crossings.
The resurgence of the debt issue in New York reflects its persistence as a financial matter between Libya and Tunisia, despite years of review and unfulfilled promises. Resolving the issue hinges on reaching a final, agreed-upon value for the dues and determining a clear payment mechanism, ultimately ending the prolonged delay.
Key points
- Libya's debt to Tunisia is estimated at $250 million.
- The debt issue has been ongoing since 2011.
- Joint committees have been formed since 2018 to review and audit the debt.
